TPCI Tennessee Property and Casualty Insurance Exam - Set 3 - Part 3

Test your knowledge of technical writing concepts with these practice questions. Each question includes detailed explanations to help you understand the correct answers.

Question 41: A turbine at an insured's plant will take months to repair, so the insured authorizes temporary repairs and extra costs to speed the permanent repair of the damaged property. Which equipment breakdown coverage pays these extra costs to make temporary repairs and expedite permanent ones?

Property damage coverage

Expediting expenses coverage

Spoilage damage coverage

Utility interruption coverage

Question 42: A frozen food processor loses a batch of perishable stock when a covered breakdown cuts off refrigeration and the products thaw and spoil. Which equipment breakdown coverage responds to loss of perishable goods caused by a lack or excess of power, heat, or refrigeration?

Spoilage damage coverage

Expediting expenses coverage

Brands and labels coverage

Property damage coverage

Question 43: The equipment breakdown coverage form includes a unique suspension provision. When the insurer finds specific covered equipment in a dangerous condition, it may suspend coverage on that equipment without advance notice. How does the suspension take effect and what does it reach?

After thirty days, all equipment

At policy expiration, all equipment

Immediately by written notice, that equipment

After sixty days, that equipment

Question 44: Small businesses may choose a businessowners policy instead of a commercial package policy. Insurers set common eligibility guidelines, and one BOP rule limits the annual revenues an eligible risk may generate. Along with employee and floor-space limits, what is the common maximum revenue figure?

One million dollars

Three million dollars

Ten million dollars

Six million dollars

Question 45: The businessowners policy provides property coverage on an open-peril basis, insuring covered property against any cause of loss not excluded. Even so, some categories of property are simply not covered by the BOP. Which of the following is not covered property under the BOP?

Aircraft and licensed vehicles

Business furniture and fixtures

Tenant improvements and betterments

Exterior building glass

Question 46: After a tornado damages a building down the block, civil authorities bar access to an insured's undamaged store for several days. The BOP civil authority additional coverage pays the resulting lost business income, but only beginning after a waiting period. When does that coverage begin?

Immediately after the action

Twenty-four hours after action

Seventy-two hours after action

One week after action

Question 47: The businessowners policy applies a base deductible to building and business personal property losses, though several additional coverages such as business income and fire department service charge are exempt from it. What is the standard deductible amount for the BOP?

One hundred dollars

Two hundred fifty dollars

One thousand dollars

Five hundred dollars

Question 48: The businessowners policy covers specified medical expenses for someone injured in an accident on the premises without regard to fault, paying reasonable costs for first aid, medical services, and funeral services. These expenses are covered only if incurred within a set time after the accident. What is that time?

Within ninety days

Within one hundred eighty days

Within one year

Within three years

Question 49: A pizza shop's employees deliver using their own cars, and the owner worries the business could be sued after an employee's accident. The shop has no commercial auto policy. Which BOP endorsement covers the business's liability for hired and employee-owned autos used in the business?

Hired and nonowned auto liability

Protective safeguards endorsement

Utility services time element

Utility services direct damage

Question 50: A BOP insured adds the employee dishonesty optional coverage. After the policy expires, the insured discovers that an employee stole money during the policy term. The coverage will not pay for a loss discovered beyond a certain time after the policy ends. What is that discovery period?

Thirty days

Ninety days

Six months

One year

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